Sangsangin's Counterattack? Court Grants Suspension of Execution for CEO Yoon Won Yoo's Job Suspension Order

[Asia Economy Reporter Kim Min-young] Sangsangin Group announced on the 22nd that the Seoul Administrative Court has approved the suspension of the execution of the financial authorities' order to suspend the duties of CEO Yoo Jun-won, which was submitted on December 23 last year.

According to Sangsangin, the court stated the reason for approval as follows: "It is recognized that there is an urgent need to prevent irreparable damage to the applicants, and there is no evidence to suggest that suspending the order would cause significant harm to public welfare."

With this court approval, the sanctions imposed by the Financial Supervisory Service will be suspended until the administrative lawsuit results are finalized. Accordingly, the company believes that the issue regarding CEO Yoo's eligibility as the largest shareholder of the savings bank, which arose due to the Financial Supervisory Service's sanctions, has also been halted.

Previously, Sangsangin and Sangsangin Plus Savings Bank received a notification from the Financial Supervisory Service regarding sanctions for violations and unfair practices related to CEO Yoo’s three-month suspension. The reasons included exceeding the credit limit for individual borrowers while Yoo was CEO of Sangsangin Plus Savings Bank, failure to comply with mandatory credit provision ratios within the business area, submission of false business reports, acceptance of binding deposits, improper provision of financial benefits to major shareholders, inadequate credit handling and post-management, improper settlement processing, appointment of executives with disqualifications, non-compliance with performance-based compensation regulations, and failure to follow approval procedures when owning shares of other companies, all violating the Mutual Savings Banks Act.

CEO Yoo currently holds 31.9% of Sangsangin’s shares, making him the largest shareholder. Sangsangin owns 100% of the shares of Sangsangin and Sangsangin Plus Savings Bank. Even if the violations occurred before the implementation of the Financial Company Governance Act in August 2016, the governance law is applied retroactively if a sanction equivalent to suspension of duties is notified.

In the worst-case scenario, if CEO Yoo is confirmed to be disqualified in the financial authorities’ major shareholder eligibility review, he may be required to dispose of all shares exceeding 10%.

This content was produced with the assistance of AI translation services.